Question 1

Lorenzo Clowder has settled on purchasing a new Honda Accord and has found that the suggested retail price is $22,200 and that the dealer's invoice price is $19,980.It is time for him to go to a dealer and negotiate the price he will pay for his new car.What step in the purchasing process is Lorenzo carrying out?

Accepted Answer

Lorenzo is determining the purchase price, which is a step in the purchasing process. He has already completed the problem identification and information gathering steps by selecting the Honda Accord and discovering the suggested retail and invoice prices. He has also evaluated alternatives by deciding on the Honda Accord as his preferred model. After negotiating with the dealer, he will finalize his purchase and move on to post purchase activities.

Question 2

Brad Hayden has a piece of paper that guarantees the conditions,under which he can return,replace,or repair an item that he has purchased.What is it he most likely has?

Accepted Answer

A warranty is a written guarantee that an item will be repaired or replaced without charge during a stated period of time.

Question 3

Tiffany Parrish has purchased a new car.Since then she has had to make six trips to the dealer in four weeks to fix several major problems without much luck.She knows that she is entitled to a refund.What type of law gives her the right to ask for a refund?

Accepted Answer

The Lemon Law provides protection to consumers who have purchased a defective vehicle. If the car cannot be repaired within a reasonable amount of time, the consumer may be entitled to a refund or replacement vehicle.

Question 4

The price that is paid for a vehicle in a lease is called the:

Accepted Answer

The price paid for a vehicle in a lease is called the capitalized cost, which is the total cost of the vehicle including any fees, taxes, and negotiated sales price. The residual value refers to the value of the vehicle at the end of the lease term. The unit price refers to the price of each individual vehicle or unit. The deductible and premium are terms typically associated with insurance.

Question 5

An online buying club requires an annual fee of $60 in order to qualify for a 15 percent discount on purchases.What amount would a person have to buy in order to save enough to cover the cost of the membership?

Accepted Answer

(15%)(x) = $60; x = $60/.15 = $400

Question 6

Damian Walker just purchased a new vehicle.He is reading his owner's manual to know when he needs to take it in for its regular servicing at the dealer.He wants to make sure this car lasts a while.What step in the purchasing process is Damian carrying out?

Accepted Answer

Damian is engaging in post-purchase activities by reading the owner's manual to ensure proper maintenance and longevity of his new vehicle.

Question 7

A credit purchase with 24 monthly payments of $78 and a down payment of $120 would have a total cost of:

Accepted Answer

(24 F1F1F1S1F1F1F10$78) + $120 = $1,992

Question 8

A high tech scam that uses spam or pop-up messages to deceive you into revealing your credit card number,bank account information,social security number,passwords,or other sensitive information is called:

Accepted Answer

This type of scam is commonly known as phishing, where the attacker tricks the victim into providing sensitive information through fraudulent messages or websites. The other options (A, C, D, E) either refer to different types of scams or are not commonly used terms in the context of online fraud.

Question 9

Hector Ramirez has decided he needs a new car so that he has reliable transportation to work.He is getting recommendations from his friends as to what might be a good car to purchase.He is also looking at the Consumer Reports magazine to determine what they recommend as a safe,low maintenance car and he has searched some web sites on the internet as well.What step in the purchasing process is Hector carrying out?

Accepted Answer

Hector is in the information gathering stage of the purchasing process, where he is seeking out recommendations and researching potential car options through sources such as Consumer Reports and the internet.

Question 10

Brian Williams has a piece of paper that he gives to the cashier when he purchases a particular item that allows him to get a dollar off the cost of that item.What is he most likely using?

Accepted Answer

A coupon is a piece of paper or code that can be redeemed for a discount or rebate when purchasing a particular item. In this case, Brian Williams has a specific coupon that allows him to receive a discount of one dollar from the cost of the item he is purchasing.

Question 11

Emily is trying to decide whether to lease or buy a car.Which one of the following is not a factor necessary in making the comparison?

Accepted Answer

Gasoline costs are not a factor that depends on whether Emily decides to lease or buy a car. Gasoline costs are incurred regardless of whether you lease or buy a car. The other factors listed - down payment, monthly lease payments, estimated value of vehicle at end of lease period, and mileage overage charges - are all specific to the decision of whether to lease or buy a car.

Question 12

A motor vehicle has annual depreciation of $2,000;oil changes cost $120,automobile insurance $500 annually,and license plates costs $100.What is the annual amount of the total fixed operating cost for this vehicle?

Accepted Answer

Fixed costs = $2,000 + $500 + $100 = $2,600

Question 13

Stephanie Johns is a member in a store that is a nonprofit organization that buys grocery items in bulk.Members can save a considerable amount on the groceries they purchase in the store.Stephanie is most likely shopping in which type of store?

Accepted Answer

Stephanie is most likely shopping in a cooperative store. A cooperative, or co-op, is a type of nonprofit organization where members collectively own and operate the store, usually for the purpose of buying goods in bulk and passing on the savings to members. Co-ops often specialize in certain products, such as groceries or natural foods, but can also offer a variety of items.

Question 14

Isabel would spend $200 per week on groceries for her family if she did not use coupons.Her coupons save her 10 percent of that amount.She puts the amount saved into her savings account.How much will she have in her savings account at the end of the first year? Ignore interest earnings.

Accepted Answer

$200 F1F1F1S1F1F1F10.10 = $20; $20 F1F1F1S1F1F1F1052 weeks = $1,040

Question 15

Margaret Wilson has a piece of paper that she can mail in to the manufacturer of the product she just purchased that allows her to get part of her purchase price back.What is she most likely using?

Accepted Answer

Margaret Wilson is most likely using a rebate. Rebates are a form of marketing promotion in which a portion of the purchase price is returned to the buyer after the product has been purchased. The manufacturer may offer a rebate to encourage consumers to try their product, or to incentivize them to purchase more of the product.

Question 16

Sally Nash has decided she needs a new car.After doing some research,she has settled on a midsized four door sedan.She likes the Honda Accord and is exploring the features she needs and wants on this car.She is also trying to decide whether she would be better off purchasing a new car,a used car,or leasing a car.She knows that if she purchases it new it would likely last her for many,many years.On the other hand a used car would be a lot cheaper.She is not sure a lease is for her because of the mileage requirements.What step in the purchasing process is Sally carrying out?

Accepted Answer

Sally is evaluating alternatives by considering different options for acquiring the car, such as buying new, buying used, or leasing, and weighing the pros and cons of each.

Question 17

Gina Raffetto's car broke down on the way to work and her mechanic has told her that the car cannot be fixed.Gina drives 30 miles one way to work each day.There is no reliable bus or train transportation that goes anywhere near her work.Gina decides she needs a car for reliable transportation to work.What step in the purchasing process is Gina carrying out?

Accepted Answer

Gina is identifying the problem, which is the need for reliable transportation to work due to her car breaking down and the lack of public transport options.

Question 18

Regular vehicle maintenance is essential to extending the life of your car.Engine oil should be changed approximately every ____ months or _______ miles.

Accepted Answer

According to most car manufacturers and mechanics, the oil should be changed every 3 months or 3,000 miles, whichever comes first. This is because regular oil changes help keep the engine clean and functioning properly. Waiting too long to change the oil can result in engine damage, decreased fuel economy, and other major repairs.

Question 19

A Whirlpool dishwasher is an example of a:

Accepted Answer

A Whirlpool dishwasher is a national brand because it is a well-known and established brand sold in various locations across the country.

Question 20

Which of the following would be an advantage of leasing a vehicle?

Accepted Answer

One advantage of leasing a vehicle is that lease payments are typically lower than loan payments. This is because when you lease a car, you only pay for a portion of the car's value, whereas when you take out a loan to buy a car, you are financing the entire purchase price. This can make leasing a more affordable option for those who want to drive a newer or more expensive car. The other options listed (A, B, and C) are not advantages of leasing a vehicle.

Quiz 8: Consumer Purchasing Strategies and Legal Protection